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Test Your Knowledge – Retail Math Quiz


1.) What are the 6 Pillars of Retail?
Ultimate Retail Success Collection


2.) A product’s retail price is $79.95 and it costs $42.00. What is the Gross Margin of this product?


3.) What is the Mark-up for the same product?


4.) A store’s annual sales are $3,560,250. Monthly inventory is as follows:
 

Month

BOM

EOM

January 1,455,764 1,210,357
February 1,210,357 1,050,894
March 1,050,894 975,620
April 975,620 1,125,735
May 1,125,735 1,024,563
June 1,024,563 967,446
July 967,446 896,278
August 896,278 1,383,369
September 1,383,369 1,432,911
October 1,432,911 1,791,876
November 1,791,876 2,687,987
December 2,687,987 1,375,218


Based on these numbers, calculate the inventory turns for the year.
Hint: Calculate Average Inventory first.


5.) Utilizing the already calculated Gross Margin, Sales and Average Inventory, find out what the GMROII would be for this store, for the same year.


6.) We want to utilize GMROF to compare two display fixtures of different design:

Fixture 1: Oval shape with merchandised area of 7.65 square feet. Sales generated from this fixture in one month are $3,465 and Gross Margin on those sales is 43.5%.

Fixture 2: Rectangular shape with merchandised area of 7.20 square feet. Sales generated from this fixture in one month are $2,987 and Gross Margin on those sales is 45.6%.

Which fixture is more profitable?


7.) We want to compare the contribution of staff between two stores. Here is the data we have:

 
Store Sales This Month Gross Margin Total Payroll
1 $270,500 44.7% $44,895
2 $343,750 42.5% $55,280

Which store’s staff is contributing more?


8.) Here is some store data collected through POS and Traffic Counters:

# of people who entered the store - 1,362
# of sales tickets generated - 398
Total number of units sold - 724
Total payroll for the same period - $3,842
Total sales generated - $34,548

Calculate the following:

1. Conversion Rate
2. Average Sales per Transaction
3. Units per Transaction
4. Wage Cost


9.) Here is the overall company data for the 3rd quarter sales:
 
Month Sales Last Year % Achieved Target % Achieved
July $2,074 $1,926   $2,022  
August $1,866 $1,792   $1,882  
September $2,672 $2,503   $2,628  
Total Q3 $6,612 $6,221   $6,532  


Calculate this year’s performance compared to Last Year and compared to Target for each month and for the 3rd Quarter.

Answers are in the Retail Math Made Simple Page. (Please scroll to the bottom of the page.)




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